While you were sleeping: Facebook soars on
earnings

American GDP expanded at a 3.2 percent annual pace
in the fourth quarter of 2013, according to Commerce
Department data, following a 4.1 percent gain in the third
quarter. Consumer spending climbed 3.3 percent.

"The
economy was firing on almost all cylinders as 2013 came to a
close. For today, the sun is out and shining," Chris Rupkey,
chief financial economist at Bank of Tokyo-Mitsubishi UFJ in
New York, told Reuters.

Some believe the US Federal
Reserve might have to consider accelerating the tapering of
its bond-buying program because of the economy’s strength.
Yesterday the Fed announced it would downgrade its monthly
bond purchases by US$10 billion to US$65 billion, as was
widely expected.

Still, not all US economic data were
rock solid.

Separately, jobless claims rose more than
expected, rising 19,000 to 348,000 in the period ended
January 25. The National Association of Realtors’ gauge of
pending home sales sank 8.7 percent in December, following a
revised 0.3 percent slide in November that was initially
reported as a gain.

“Unusually disruptive weather
across large stretches of the country in December forced
people indoors and prevented some buyers from looking at
homes or making offers,” Lawrence Yun, NAR chief
economist, said in a statement.

“Home prices rising
faster than income is also giving pause to some potential
buyers, while at the same time a lack of inventory means
insufficient choice. Although it could take several months
for us to get a clearer read on market momentum, job growth
and pent-up demand are positive factors,” Yun said.

Advances in shares of Walt Disney,
last up 3.1 percent, those of Nike, last up 3 percent, led
the gain in the Dow.

Shares of Facebook soared, last up
15.7 percent, after the company posted
stronger-than-expected revenue in the latest quarter as
mobile advertising accounted for more than half of its
advertising revenue.

“Mobile is so key for them,”
Laurence Balter, an analyst at Oracle Investment Research
who has a hold rating on the stock, told Bloomberg News.
“It’s going to be a big battle between Facebook and
Twitter, and it’s Facebook’s game to lose.”

Shares
of Visa rose, last up 2.6 percent, as the company reported
quarterly profit that surpassed expectations.

Shares of
Google gained, last up 2.9 percent, after Lenovo Group
agreed to buy its Motorola Mobility phone unit for US$2.91
billion.

The Wellington-based BusinessDesk team led by former Bloomberg Asian top editor Jonathan Underhill and Qantas Award-winning journalist and commentator Pattrick Smellie provides a daily news feed for a serious business audience.

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